In the latest tariffs development, President Trump said that some goods from Canada and Mexico will be exempt from tariffs until April 2, walking back the broad 25% duties imposed against those countries that started March 4 after a previous one-month delay.

Trump said Thursday that he had paused the tariffs on imports from Canada and Mexico that full under the U.S.-Mexico-Canada Agreement (USMCA) trade pact.

CNBC noted that a White House official told the news outlet that about half of Mexican imports and 38% of Canadian imports qualify.

Meanwhile, two senior Canadian government officials reportedly told the Associated Press that Canada’s initial wave of retaliatory tariffs will remain, which apply to items that include some American household staples like orange juice, peanut butter, coffee, appliance, footwear, cosmetics, motorcycles and some pulp and paper products.

A White House fact sheet noted that tariffs imposed “to address the flow of illicit drugs across our borders” include the following as of Thursday evening:

• 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin
• A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference
• A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference
• No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference

A New York Times report noted that about 10% of Mexico’s exports to the U.S. fall outside of USMCA, which include automobiles and machinery.

About 10% of Mexico’s exports to the U.S. still fall outside of the trade pact, including automobiles and machinery exports; meaning they will not be free from tariffs, according to a New York Times report.

The move came a day after Trump’s decision to also grant automakers a one-month exemption from tariffs he imposed on imports from Mexico and Canada.

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